EXCLUSIVE - Four ministers discussing CPP block's fate

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said he and three other ministers would make a joint recommendation for President Abdurrahman Wahid to decide on the development of the Coastal Plains Pekanbaru (CPP) block in Riau after the current contract of PT Caltex Pacific Indonesia on the block expires next August.

Purnomo said the three other ministers were Minister of Home Affairs Surjadi Sudirdja, Coordinating Minister for Political, Social and Security Affairs Susilo Bambang Yudhoyono, and Coordinating Minister for the Economy Rizal Ramli.

"The four ministers are discussing the CPP case," Purnomo told Petromindo.Com early Saturday morning on his arrival at the Soekarno-Hatta international airport from Bali.

President of state oil and gas company Pertamina Baihaki Hakim earlier said Pertamina had asked the government to decide on the future development of the block after the negotiation between the state company and the Riau provincial administration on the joint development of the block failed to bring results.

He said Riau agreed to set up a joint venture with Pertamina to develop the block after Caltex's contract on the block expires next August, but the province demanded a 70 percent stake in the joint venture.

Pertamina however insisted on a 51 percent ownership of the joint venture.

Caltex is also keen to participate in the future development of the block, but the Riau provincial council has indicated that it will only tie up with Pertamina.

It remains unclear if the participation of Caltex is among the options being considered by the four ministers.

Caltex is an equal joint venture of American oil and gas companies Chevron Corp. and Texaco Inc., which recently announced merger. (Godang)